Cibil score:In today’s era, when we are dependent on loans or credit cards for every small and big need, Cibil Score has become an important part of our financial life. This score not only reflects our financial credibility, but also makes the way easier or difficult to take a loan from the bank or to get a credit card in the future.

But what is this Cibil Score, and how can it be made better? Let us talk deeply on this subject, so that you can strengthen your financial health.

Cibil Score: Your Financial Identity

CIBIL Score is a three -digit number, which reflects your credit history. This score is prepared based on the payment of your old and existing financial activities, such as loan EMI, credit card bill and other loans. If you pay your bill and EMI on time, this score is better, but if there is a delay or lapse in payment, it can damage your financial credit.

Banks and financial institutions consider Cibil Score as a measure of your credibility. For example, if you want to take a home loan, car loan or personal loan, the bank first checks your cibil score. A good score not only makes the approval of loan easier, but can also benefit the low interest rates.

How much cibil score is considered good?

The range of Cibil Score ranges from 300 to 900. If your score is above 700, it is considered good, and banks can easily give you a loan. The score between 600 and 700 is average, which has scope to improve. At the same time, the score between 300 and 500 is considered poor, and it can be a hindrance to loan or credit card approval.

Way to improve bad cibil score

If your cibil score is low, there is no need to panic. It is possible to improve it, but it requires patience and discipline. Usually, it may take from 6 months to one year to fix the bad score. During this time you have to pay attention to your financial habits.

The most important is that you pay all your bills, EMI and credit cards on time. Your score can go down further by delay or lapse. Also, avoid spending more than credit card limit. Experts recommend not to use the credit limit more than 30-40%.

Increase your cibil score with smart methods

There are some easy and effective ways to improve Cibil Score. First, check your credit report regularly. If there is any mistake in this, such as wrong loan or payment, then get it fixed immediately. In addition, do not apply for several loans or credit cards simultaneously, as repeated application may affect your score.

The correct use of credit cards also helps to improve the cibil score. If you have a credit card, use it regularly, but always pay the bill on time. If you do not have a credit card, consider taking a safe credit card, which may help in improving the score.